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2008, No. 26
Posted 2008-10-27

Net Exports’ Recent (and Surprising?) Contribution to GDP Growth

by Silvio Contessi

GDP in the second quarter of 2008 surprised many professional forecasters, who expected a much lower figure because of continuing difficulties in the housing sector and mounting job losses. What accounts for this surprisingly strong performance? The short answer is contributions from international trade, but this answer leads to two more questions.